Zambia has started accepting China's yuan for mining taxes, becoming the first African nation to do so.

This reflects China's increasing financial influence in Africa's strategic resource sectors.

The Bank of Zambia is aligning its reserve management with the significant role of China as a major copper trade and debt partner.

The acceptance of yuan enables Zambia to service its Chinese debts more cost-effectively.

The Bank of Zambia confirmed that payments in renminbi began in October, marking a significant shift in how Africa’s second-largest copper producer manages its mining revenues.

Bloomberg reported that Chinese mine operators are now settling part of their tax obligations in yuan, reflecting the growing role of China as both Zambia’s biggest copper buyer and one of its largest creditors.

The central bank said the change aligns with its reserve-management strategy and export realities.

“A large portion of copper exports go to China and the Chinese mining firms already receive some, if not all, of their payments for their exports to China in renminbi,” the Bank of Zambia said.

“The Bank of Zambia has the diversification and building-up of its reserves as a key objective, and purchasing renminbi enables the bank to actualize this objective.”

The bank added that holding yuan also makes it cheaper to service Chinese debt, saying it would allow Zambia “to service its debts to China in a more cost-effective manner.”